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Crypto May Be Coming to Your 401(k) — Here’s What to Know Now

Ponzi Scheme

Crypto May Be Coming to Your 401(k) — Here’s What to Know Now


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Fidelity Investments announced Tuesday that it will offer 401(k) investors access to Bitcoin as an investment choice in their retirement accounts. This is big news because Fidelity is a legacy investment brand, and cryptocurrencies have been pretty much on the fringe of the investment world — until now.

Fidelity says it is the first major retirement-plan sponsor to announce the offering of Bitcoin investments.

In recent years, the knee-jerk reaction among many financial advisors has been to warn off clients from crypto investments. It’s “too volatile.” Doesn’t have “an intrinsic value.” It’s a “Ponzi scheme,” many have said.

Let’s face reality: The blockchain technology that serves as the foundation of cryptos isn’t going away anytime soon. Let’s get past the noise, though, and consider if Bitcoin and its brethren might fit into your investment plan.

Your employer will make the first choice

First, the Fidelity news won’t mean that Bitcoin will show up immediately on your 401(k) plan’s investment menu. Fidelity is still “building out its digital asset platform,” according to a press release, and the Bitcoin option won’t be available in its 401(k) plans until later this year.

Beyond that, employers will have to approve crypto…

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